The majority of car accidents in Kentucky are due to one driver’s negligence. Speeding, following too closely, or disobeying traffic signals are all common factors. If you’ve suffered injuries as a result of a collision involving negligence, the responsible party could be liable for your losses. Typically, you would seek compensation from that person’s insurance company. At times, it’s possible to agree with this insurer and settle your claim.

However, it’s not common for an insurance company to deny your claim. While frustrating, an initial settlement denial doesn’t necessarily end your case. An experienced car accident attorney can help you pursue your claim and get the settlement you deserve under Kentucky law.

Why was my car accident settlement denied?

Understanding First-Party Versus Third-Party Claims

In filing for compensation against the negligent driver’s insurer, it’s important to understand how claims work. A first-party claim would be one that you file with your own insurance company under your own policy. A third-party claim is presented to the responsible party’s insurer.

Claims in a No-Fault State

The distinction is important because Kentucky is a choice no-fault state. This means the no-fault coverage on the vehicle you occupied covers your medical expenses and lost wages up to the applicable limit, whereas the responsible driver’s insurance covers damages not covered by no-fault. State law requires all motorists to maintain no-fault coverage, which is also known as Personal Injury Protection (PIP) Coverage. This covers everyone riding in the policyholder’s vehicle at the time of an accident.

Under Kentucky no-fault law, you must also meet a minimum threshold for your expenses before you can seek compensation from the other motorist. In almost any accident involving any medical attention at all, it’s likely that your medical costs, lost wages, pain and suffering, and other losses will exceed that amount.

You can opt out of PIP coverage, which would enable you to pursue a third-party claim against the driver that caused your car accident.

Common Reasons Insurance Companies Deny a Claim

If your initial claim is denied, it’s important to remember that insurance companies are businesses first. To protect their bottom line, an insurer will attempt to find loopholes or other reasons to offer a low-ball amount or decline your entire claim. Some reasons for denial may include:

  • There’s a dispute over liability, where you’re pursuing a third-party claim;
  • The policyholder let the insurance coverage lapse by not paying premiums;
  • You didn’t inform the insurer of the accident within a reasonable time period, so the company isn’t able to conduct an investigation;
  • Your request for compensation is excluded under the terms of the policy.

Were you injured due to another person’s negligent driving?

The attorneys at Harville Law Offices, PLLC are here to safeguard your legal interests. We have represented many clients involved in Kentucky car accidents. If you suffered injuries in an auto collision, please call us right away at (502) 245-2333 or contact us online to request your free legal consultation. We serve car accident victims throughout the Louisville area, including Lexington, Owensboro and Bowling Green, and throughout all surrounding counties.


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